You are paying a series of five constant-dollar (or real-dollar) uniform payments of $664.85 beginning at the end of first year. Assume that the general inflation rate is 18.61% and the market interest rate is 18.61% during this inflationary period. The equivalent present worth of the project is:

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter2: The One Lesson Of Business
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You are paying a series of five constant-dollar (or real-dollar) uniform payments
of $664.85 beginning at the end of first year. Assume that the general inflation
rate is 18.61% and the market interest rate is 18.61% during this inflationary
period.
The equivalent present worth of the project is:
Transcribed Image Text:You are paying a series of five constant-dollar (or real-dollar) uniform payments of $664.85 beginning at the end of first year. Assume that the general inflation rate is 18.61% and the market interest rate is 18.61% during this inflationary period. The equivalent present worth of the project is:
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